5 June 2026, Pretoria – The claim in some media and online platforms that the South African National Roads Agency SOC Limited’s (SANRAL) Chief Executive Officer (CEO) Mr Reginald Demana has “a case to answer” on alleged procurement irregularities and that there is a “R9.5 billion tender storm” at the roads agency requires a response from SANRAL.
The allegations of wrong practices in the procurement of Routine Road Maintenance (RRM) contracts date back to 2013 contracts. The roads agency had been navigating historic irregular expenditure of about R9.5 billion linked to RRM contracts awarded between 2011/12 and 2018/19. This matter was resolved and is now in the past, and full disclosure was made in publicly available SANRAL annual reports. Despite these irregular expenditure figures, SANRAL received an unqualified audit opinion during the period, since it was noted that no confirmed irregular expenditure was linked to fraudulent or criminal intent. These matters predate Mr Demana’s tenure at SANRAL. He assumed the role of CEO on 1 January 2023.
SANRAL has noted the interest allegations of unlawful procurement practices in its Supply Chain Management Division (SCM or Procurement) has created. These allegations initially arose from a whistleblowing report received from the Minister of Transport’s office and referred to the new Board for investigation on assuming office on 1 March 2026.
The media interest is surfacing when the SANRAL Board had already embarked on investigations to determine the veracity of the allegations, with the allegations being the subject of investigations by SANRAL’s Internal Audit Division as well as an external law firm. The SANRAL Board is committed to open and transparent procurement and will implement recommendations and outcomes that emerge from the investigations.
Also, media and online reports have recently emerged stating that there has been a raid by the Hawks at SANRAL. Nothing could be further from the truth. SANRAL received an enquiry from the Directorate for Priority Crime Investigation (DPCI) requesting information related to certain tenders. This is not out of the ordinary. SANRAL has cooperated with the DPCI in sharing tender related information on some allegations they were investigating in the past and would continue to do so. There was no raiding of SANRAL premises by the DPCI and the same can be verified by the Directorate.
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SANRAL can confirm that three employees in SCM were suspended in April 2026 for gross misconduct unrelated to whistleblowing allegations. The suspended employees have since filed an application in the Johannesburg, Labour Court to set aside their suspensions (and seek to return to work). SANRAL is opposing this application, and the matter is before the court on 9 June 2026.
Acutely aware of the sensitivity around this investigation and compounded by the reality that the labour matter is now before a court of law, SANRAL recognises the sub-judice principle and cannot give further details at this stage. Members of the media are, however, encouraged to also follow and have regard to the position which SANRAL has already filed on record before the court. In addition, SANRAL is currently going through the annual external audit of its business, with the Auditor General of South Africa and this includes Procurement.
The roads agency encourages whistleblowing which is processed within applicable legal prescripts and takes such issues seriously. The organisation considers all serious allegations and where necessary, investigates them. Any officials (irrespective of seniority) found to have wilfully and/or negligently breached procurement prescripts, including through dishonesty and/or through collusion practices, will at the least be charged and subjected to disciplinary action. There are ongoing reforms which are currently underway in SANRAL’s procurement environment under the leadership of the newly appointed Board.
SANRAL is committed to dealing with the procurement challenges that the organisation has experienced in order to return it to an effective and efficient enabler of economic and social development through its road infrastructure projects.
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Issued by the South African National Roads Agency SOC Limited (SANRAL). For editorial content or additional information contact Lwando Mahlasela on 082 440 5305 or mahlaselal@nra.co.za